Don’t know what all the legal jargon means? Here is a quick guide to definitions.
The Estate
Estate Planning
Last Will & Testament
Revocable Living Trust
Powers of Attorney
Estate Settlement
Probate
Legacy Trust
Beneficiary:
Someone named in a legal document to inherit money or other property. Wills, trusts, and insurance policies commonly name beneficiaries; beneficiaries can also be named for “payable-on-death” accounts.
Bequeath:
To leave property at one’s death; another word for “give.”
Bequest:
A gift of an item of personal property (that’s anything but real estate) made at death.
Executor:
The person named in a will, and appointed by the probate court after the will-maker’s death, to wind up the affairs of a deceased person. In some states, executors are called “personal representatives.”
Gift and Estate Tax:
A tax imposed on very large transfers of property (during life or at death) by the federal government. Some states have their own estate taxes as well.
Heir:
Someone who inherits property under state law if there’s no valid will.
Issue:
Direct descendants, including children, grandchildren, and so on. A spouse, brothers, sisters, parents, and other relatives are not issue.
Personal Property:
All movable property other than land and buildings.
Personal Representative:
Another name for the executor or administrator of an estate. Some states use this term (often abbreviated “PR”) instead of executor; some states use either.
Per Capita:
A way of dividing property among the descendants of a deceased heir beneficiary.
Real Property:
Real estate—that is, land and things permanently attached to it, such as houses.
Residue or Residuary Estate:
All property subject to a will that isn’t given away specifically in the will. Often, a will leaves certain valuable items to named beneficiaries and then “the rest and residue of my estate” to another beneficiary.
Revocable Trust:
A trust that the settlor can revoke at any time during his or her lifetime.
Right of Representation:
A way of dividing property among the descendants of a deceased heir or beneficiary. The general idea is that the children of a deceased beneficiary inherit that person’s share—for example, if a father leaves property to his daughter, and at his death the daughter has already died, leaving two grandchildren, the grandchildren would take their mother’s share.
Settlor:
Someone who creates a trust.
Successor Trustee:
Someone who takes over as trustee of a trust if the original trustee can no longer serve.
Testament:
An act by which a person determines the disposition of his or her property after death.
Trustee:
Someone who has legal authority over the assets in a trust.